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Doric Agricultural Products uses a predetermined overhead allocation rate based on direct labor hours . The predetermined overhead allocated during the year is $270,000. The

Doric Agricultural Products uses a predetermined overhead allocation rate based on direct labor hours. The predetermined overhead allocated during the year is $270,000. The details of production and costs incurred during the year are as follows:

Actual direct materials cost

$812,500

Actual direct labor cost

$180,000

Actual overhead costs incurred:

$264,000

Total direct labor hours

5,520 hours

What is the predetermined overhead allocation rate applied by Doric?


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